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Repayment plan confusion

February 21st, 2016 at 02:19 am

After submitting my income-based-repayment renewal application a couple months ago I finally saw my new scheduled monthly payment on the website today...and it's about $60/month less than last year, even though my income went up by about $1000/year?

I'm not quite sure where this number is coming from- they calculated it from accurate recent paystubs I submitted, and I know I didn't pay down enough principle last year to account for the difference. That said, I always seem to talk to a new person each time, so it's possible that last year they calculated a higher amount than strictly necessary by the terms of the program and I just never contested it.

If this IS my new repayment amount I will benefit by taking the difference left in my current budget and applying it to extra principle payments on the higher interest loan in my account. I'm going to wait until the first autopay withdrawal goes through before counting my chickens though-they may adjust it before then. Meanwhile I sent an additional $160 to the high interest loan today that came from picking up extra hours last pay period. Every little bit helps.

On the spending side, I've been working 90-100 hour weeks lately due to a tough assignment at work, so coffee and snacks spending is up because there has been no time to grocery shop. (I only come home to sleep at this point). On the positive side though, entertainment spending is zero and hopefully the heating bill will be down, since I turn it off completely when I'm not there. Even when I'm feeling self-indulgent I tend to stick to the less expensive food and coffee options at work, and I've been using up some old leftover giftcards for the cafeteria. Ony about 2 more weeks left at this pace before I can downshift to a less hectic schedule, so will try to keep the damage to a minimum!

4 Responses to “Repayment plan confusion”

  1. creditcardfree Says:
    1456066492

    It could be that the formula for calculating your payment has new ranges for income and you are still in a lower bracket despite an increase in income. I hope it remains that your payment is lower.

    And boy, hang in there! That is a lot of overtime!!

  2. rob62521 Says:
    1456081219

    Wow. Your work weeks have been brutal. Hope you are taking good care of yourself.

  3. LivingAlmostLarge Says:
    1456105681

    Wow brutal working. Stay tough and take care not to get sick and run down.

  4. VS_ozgirl Says:
    1456227106

    Those are crazy hours, be sure to look after yourself to avoid getting rundown and sick. Sometimes we need to spend on things being prepared for us when we're strapped for time, I'm sure when work is back on a normal routine you'll go back to your more frugal ways.

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